Fastest growth of wages recorded in Czechia since 2007

photo: (Barbora Němcová)

Average monthly salaries in the Czech Republic grew by 7.6 percent in the second quarter of this year, according to figures released on Tuesday. It is the fastest growth since 2007 and since the economic crisis.

In the first six months of 2017, average monthly wages in the Czech Republic grew to 29,346 crowns, according to the data released by the Czech Statistical Office on Tuesday.

After taking inflation into account, real income grew by more than five percent. Growth exceeded expectations of analysts, who predicted a slightly lower growth at around 6.4 to 6.8 percent.

Prague traditionally tops the figures, with the average wage climbing to 37,046 crowns a month in the second quarter. The lowest wages - 25, 298 crowns - were once again recorded in the Karlovy Vary region. The biggest increase - nearly 16 percent - was recorded in the field of accommodation and catering.

Among the main reasons behind the increase of salaries is strong economic growth and a lack of employees. At the moment, there are a record 190,000 vacancies in the Czech Republic. This pushes companies to increase wages in order to maintain their employees and attract new ones.

According to ČSOB analyst Petr Dufek, the current rate of wage growth is expected to last until the end of the year:

“The excess on labour market is not likely to end any time soon, which means firms will have to fight for their employees even more,” he told the daily Hospodářské noviny.

Average salaries have been constantly rising in the Czech Republic since the start of 2014. At the same time, around two-thirds of employees cannot reach it.

The minimum wage has also gradually been increased and is expected to go up again next year.